FOCUS MINERALS LTD — Capital/Financing Update 2011

Feb 28, 2011

01 March 2011

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ASX ANNOUNCEMENT

HIGH-GRADE RESULTS POINT TO MORE OPEN PIT RESOURCES AT TINDALS

• Drilling results at Undaunted prospect include 21m at 5.8g/t and 15m at 3g/t

• Results highlight potential for Undaunted to further increase Focus’ growing pipeline of open pits for future development

• Initial open pits at Tindals on track to start production in April 2011

Gold producer Focus Minerals (ASX: FML ) is pleased to announce that drilling has returned a series of high-grade intersections which highlight the potential for a further increase in open pit resources at its Tindal Mining Centre in Coolgardie.

A six-hole RC drilling program at the Undaunted prospect, which lies within the 2km corridor of planned open pits at Tindals, delivered excellent results including 21m at 5.8g/t and 15m at 3g/t (see Table 1).

Focus is in the final stages of delivering on the first phase of its open pit strategy at Tindals with plans to commence mining at three deposits from April 2011.

Focus Chief Executive Campbell Baird said the drilling results at Undaunted would help build the portfolio of prospective deposits for subsequent phases of this strategy.

“Focus is in the process of developing a low-cost, sustainable open pit production base at the Tindals Mining Centre to supplement ore currently produced underground,” Mr Baird said.

“We already have a significant surface resource at Tindals along a 2km strike and on completion of our first phase of development we should see the open pits account for about 20 per cent of our ore production on a monthly basis.

“The supply of low-cost open pit ore will enable Focus to reduce its reliance on the underground operations at Tindals. This will also be supplemented by high-grade ore from The Mount underground development, which is due to start production next month.”

The Tindals Mining Centre currently has an open pit resource of 8.3Mt @ 2.3g/t for 608,000 ounces (see Table 2) . Of the 13 deposits and prospects within the Centre, three will move to production in the first half of this calendar year with the remainder earmarked for further drilling and development work.

Paul Armstrong / Nicholas Read Read Corporate Phone: +61 (0)8 9388 1474

Campbell Baird, CEO Focus Minerals Ltd

Phone: +61 (0)8 9215 7888

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Figure 1. Location of major surface deposits at the Tindals Mining Centre
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Figure 2. Tindals Mining Centre- Surface Development Strategy

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Table 1. Drill Results at Undaunted Deposit

Hole Number	Northing	Easting	Azimuth	Dip	Total Depth	From (m)	To (m)	Intercept (m)	Grade (g/t Au)
UNC001	6570910	326280	90	-60	48	14.00	35.00	21.00	5.79
UNC002	6570908	326270	90	-60	48	36.00	42.00	6.00	3.00
UNC003	6570930	326280	90	-60	48	17.00	32.00	15.00	3.00
UNC004	6570930	326270	90	-60	48	37.00	42.00	5.00	2.01
UNC006	6570887	326281	90	-60	48	2.00	5.00	3.00	4.01
UNC007	6570890	326270	90	-60	48	41.00	48.00	7.00	1.74

Table 2. Tindals Open Pit Resource Summary.

	Measured Resources	Measured Resources	Measured Resources	Indicated Resources	Indicated Resources	Indicated Resources	Inferred Resources	Inferred Resources	Inferred Resources	Total Resources	Total Resources	Total Resources
	Tonnes '000t	Grade Au g/t	Ounces	Tonnes '000t	Grade Au g/t	Ounces	Tonnes '000t	Grade Au g/t	Ounces	Tonnes '000t	Grade Au g/t	Ounces
Tindals Project Surface				6,007	2.2	418,000	2,306	2.6	190,000	8,313	2.3	608,000

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NOTES

The information that relates to exploration targets refers to targets that are conceptual in nature, where there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. Results from this drilling programme have been assayed using a 500 gram Pulverize and Leach (PAL) system at Focus’ on Site assay laboratory.

BACKGROUND INFORMATION – FOCUS MINERALS LTD

Focus Minerals Ltd (ASX: FML) is an Australian-based gold producer based in the Coolgardie-KalgoorlieWidgiemooltha region of Western Australia. The company holds the mineral rights to more than 305 km[2] of tenements and is the largest landholder in the Coolgardie Gold Belt located in Western Australia, 560km east of Perth and 35km west of the ‘Super Pit’ in Kalgoorlie-Boulder. More than 2.6 million ounces of gold has been produced from the Coolgardie gold belt alone since 1892. Focus is currently in production from its flagship Tindals Mining Centre operation in Coolgardie, adjacent to its 1.2mtpa Three Mile Hill processing plant. The Tindals Mining Centre comprises a major underground production operation and the business will commence open cut mining at Tindals in the first half of calendar 2011 from a series of deposits. In addition, Focus will also commence production from another new operation in the first half of 2011 at The Mount Underground Mine located 80km to the south.

COMPETENT PERSON’S STATEMENT

The information in this report that relates to Exploration Results and Minerals Resources is based on information compiled by Dr Garry Adams who is a member of the Australasian Institute of Mining and Metallurgy. Dr Adams is a full time employee of Focus Minerals and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Adams consents to the inclusion in the report of the matters based on the information in the form and content in which it appears.

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